Novartis Consumer Health: Evolution of a Loyalty Program

Novartis Consumer Health, Inc. (NCH), the makers of Prevacid®24HR, a leading frequent heartburn remedy, faced increased pressure from its competition in 2012, forecasting a significant loss to the brand. As a result, The Prevacid®24HR brand needed a strategy to retain and insulate its current loyalists from competitors in short term.

Long term, the brand envisioned a need to engage consumers more deeply and seize a clear point of differentiation in a cluttered category. For JoAnn McCormack, Sr. Digital & Activation Manager, Novartis Consumer Health and Anthony Aguiar, Loyalty Strategist, IC Group, this was the focal point of their session at the 7th Annual Loyalty Expo, presented by Loyalty360 – The Loyalty Marketer’s Association.

Data showed Proton Pump Inhibitor (PPI) category consumers spend. The average PPI user’s yearly spend in the category is more than $60, according to Aguiar. Prevacid®24HR loyalists spend more than $100 annually, but they also get 25% of their PPIs from other brands.

Armed with this knowledge, NCH devised a strategy to target its loyalists and qualified prospects (frequent heartburn sufferers) via a loyalty program that offers lifestyle rewards, quarterly savings, ongoing communications, and education about frequent heartburn, setting a goal of reaching 400,000 members by Q1 2014.

“There was a need for better repeat engagement,” Aguiar said.

McCormack told attendees that NCH wanted a very simple loyalty program that drove an emotional connection among its target customers: Loyalists who spend more than $100 a year.

“The program idea was to elevate the brand’s engagement with consumers and drive an emotional connection through CRM strategy and a loyalty program,” McCormack said.

Phase 1 objectives:

Develop a personal relationship with loyalists by driving 1 incremental purchase per year

Consumer recruitment

Increase SOR (Share of Requirement, or share of wallet) among Loyalists

Provide smart value

How the Prevacid Perks program works:

Consumers receive a $3 coupon when they sign up

Receive a free reward once a month with proof of purchase

Rewards include discounts at restaurants, music downloads, magazine subscriptions, etc.

Perk with purchase: monthly e-newsletter; quarterly e-coupon

Social media integration

Measuring success:

Program KPIs centered on acquisition, engagement, and advocacy

Phase 2 objectives:

Protect Loyalists

Strengthen emotional bond

Increase repeat engagement

Targeted communications

Limit financial liability

How it works: Fill your pill (complete three activities); get your perk

Monthly activities: Enter a 12-digit UPC code found on the box; “Like” us on Facebook; read an article on WEBMD;  share a $3 coupon; write a review (tell us what u think); open an email.

Segmented communication for:

Program entry

Lapsed activities

Shopper marketing activations

Other behaviors and data points

Unified Log-in (Register profile once and long-in across all Novartis brands; cross-pollinate brand opt-ins)

2014 Program KPIs centered on:

Registrations

UPC entries

Engagement activities

Promotion entries

Perks redemptions

NCH increased recruitment in 2012, increased brand sentiment in 2013, and increased engagement in 2014

Summary:

Strongest program to date

Differentiation

Engaging consumers in dialogue and relationship

Long-term brand investment

Paved the way for eCRM & loyalty

“Having a customer purchase and use or consume your product is no longer good enough today,” Aguiar said. “You need to connect with them on an emotional level and truly understand how to build loyalty with your target audience. IC Group has found that the happiest loyal customers are ones who have a deeper relationship with the brand because the brand has taken the time to get to know them.”

McCormack said the pillars that guide the Perks loyalty program are:

Provide real value for being a loyal consumer

Provide personal, relevant rewards

Make it simple to earn rewards

Have achievable milestones Integrate a human element to it 

The Prevacid®24HR brand has been able to leverage its Facebook Community for positive commentary to drive trial. It has allowed the brand to prompt and promote conversations about the brand and its Perks Program creating a sphere of influence around heavy users to overcome barriers. Earned media is an easy way of driving recruitment and engagement, McCormack said.

“It allows the brand to rely less on paid media over time,” she added.

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